How much is too much?

[Shane Albert]

I have made a couple posts on here related to getting started investing and have been answered with some awesome responses and tips as well as guidance. In my searches I seem to keep coming across multi family (4-8 unit deals) that seem doable for me as far as price. I have not yet done any real estate investing other than my personal residence. If I were to land a deal between 4-8 units, in my area I could supplement half to all of my income based on the rental market in my area. Would I be biting off more than I could chew with that many units? Or should I take advantage of a deal regardless of my lack of landlord experience?

[Thomas S.]

The number of units you are looking at is very doable. Where new landlords fail is generally in the area of misplaced compassion. Tenants will use every possible angle to take advantage of a landlord. Soft hearted/headed landlords always get eaten alive by tenants. Their biggest mistake is always in not operating by strict business policies. 

If you want to succeed you must thoroughly know and understand every state code related to land lording. Tenants rights, landlord rights must be etched into your brain. 

When a tenant problem arises, as example rent is not paid on time, to survive you act immediately. A notice must be issued asap to protect your business. Making calls, trying to contact tenants in avoidance mode and showing compassion by allowing them time extensions is always what leads to business failures.  

Always act immediately with the appropriate notices and never give a tenant the room to make excuses. Act first, apologise later. Have strict screening and operating standards, Never compromise those standards. 

You may have the weakness of caring about your tenants but they in return could not care less about their landlord. Don't be fooled. 

Success is not about the size of your business it is about the implementation of strict, no nonsense, unemotional business decisions.